The warning comes after figures published by CGA that show a net decline of nearly 6,000 licensed premises in the UK.
Kate Nicholls, chief executive of UKHospitality, said: “The sector’s outlet numbers have contracted 5% and one in five businesses say they do not have enough cash to last beyond February.
“The entire sector continues to be hit hard, but restaurants have arguably been hit hardest of all. Not surprisingly, many of the worst off are independent businesses teetering on the verge of collapse due, in large part, to the issue of rent debt.
“If we have the right support in place now, it will make the job of recovery much more achievable once we are in a position to reopen again.
“The forthcoming Budget must be a one which delivers a bold, wide-ranging package of financial support to ensure as many businesses as possible are saved. The VAT cut and business rates holiday extensions must be top of the menu.”